A federal judge "removed a potential roadblock Wednesday that could have delayed or prevented the sale" of Comcast SportsNet Houston to DirecTV and AT&T, "boosting chances the new channel could be available to several hundred thousand additional households in time for the Rockets’ first local game broadcast Oct. 29," according to David Barron of the HOUSTON CHRONICLE. U.S. Bankruptcy Judge Marvin Isgur ruled that Comcast's "decision to place Houston Regional Sports Network, the parent company of CSN Houston, into Chapter 11 bankruptcy in September 2013 combined with subsequent events," including more than $100M in "lost rights fees to the Astros and Rockets, rendered a key Comcast contract to be without value." The teams "support a reorganization plan selling the network, which will be rebranded as Root Sports Houston." The teams will "lose their equity, and 96 of 141 CSN Houston employees will be laid off, but the sale would ensure carriage on DirecTV and AT&T U-verse." Isgur will "decide as soon as Oct. 21 whether to approve the reorganization plan." Meanwhile, Comcast "may appeal Isgur’s valuation decision Wednesday to the 5th U.S. Circuit Court of Appeals." Rockets Owner Leslie Alexander and Astros Owner Jim Crane were both "pleased with Isgur's decision." Barron noted this week’s three-day hearing with Isgur "was focused on narrow but crucial legal issues surrounding the value of Comcast’s contract to air CSN Houston." Isgur's ruling "bolsters the chance that the AT&T/DirecTV sale will be completed, since the teams will pay certain debts owed to Comcast so the buyers can receive the network free and clear of liens" (CHRON.com, 10/8).
